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The Santa Clara City Council laid the groundwork for the San Francisco 49ers‘ long-awaited new stadium on Tuesday night, beginning with the approval of $10 million to prepare the site for construction.

Set to begin in January, the proposed work involves clearing an area next to the Great America amusement park – the 15-acre site of the proposed 68,500-seat stadium, which has a budget of nearly $1 billion and a construction start date of early 2013.

All utilities on the land, which is currently a parking lot, will be rerouted, such as storm drains, sewers, and electric and water lines. Features to be added include an access road on the south side of the 49ers’ training facility across the street from the stadium site, sidewalks and additional parking spaces.

The council approved the work 7-0. Members also unanimously approved a number of personnel and procedural matters related to the stadium.

“This is really an exciting move, though it doesn’t sound like very exciting work to prepare the site and move utilities and parking,” said City Councilmember Lisa Gillmor. “It’s really a great movement forward for our stadium.”

But the city has to borrow about $6 million from the 49ers, because it lacks the funds to finish the work alone.

While the construction work was expected to gain enough votes to pass, critics say the financially strained city cannot afford the stadium – and, if it never gets built, the site preparations would be a waste of $10 million.

‘Cycle of indebtedness’

“We see that as the beginning of the cycle of indebtedness for the Santa Clara Stadium Authority,” said Bill Bailey, the treasurer of Santa Clara Plays Fair, a grassroots group that opposes the stadium. He was referring to the city-created agency that oversees the stadium.

Earlier in the day, the group wrote in an e-mail blast to its members: “Why are we borrowing money when our city is so cash-strapped that we have employee furlough days every month, library cutbacks, reduction in staff wages, etc.?”

Last June, Santa Clara voters passed a measure that would provide $114 million in public funds – including $40 million in redevelopment dollars – to build the stadium, which is slated to open in 2015. The rest would come from the city’s electric utility, bonds and an increased hotel tax.

Gillmor noted the redevelopment funds would pay for the construction work up for debate. “This is nothing new,” she said.

City Councilmember Jamie McLeod, who has expressed reservations about the stadium in the past, said she now feels confident about using redevelopment funds for the construction.

“There are still some key criteria we need to meet in order to make sure we’re protecting the city from risk and protecting the city’s interest,” she said.

What remains unclear is how the 49ers and the city will afford the remaining project costs, which total an estimated $987 million. City officials say the 49ers have guaranteed they will absorb cost overruns.

Long-discussed move

The steps that the council took Tuesday are among the latest developments in the football team’s oft-discussed move. In September, local real estate company JMA Ventures bought Great America for $70 million in what company officials said was an effort to integrate the stadium into the amusement park.

In addition to approving the construction work, the council unanimously voted to update the job description of a city planner who will help with the stadium at an annual salary of about $136,000.

The council also voted to give the city manager the authority to oversee hiring contractors who will help relocate electric lines near the stadium. And it set dates for council meetings in December to discuss financial documents.